Avantax Advisory Services Inc. raised its stake in The Goldman Sachs Group, Inc. (NYSE:GS – Free Report) by 8.5% during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 25,459 shares of the investment management company’s stock after purchasing an additional 2,001 shares during the period. Avantax Advisory Services Inc.’s holdings in The Goldman Sachs Group were worth $18,019,000 as of its most recent filing with the Securities and Ex ...

Core Insights - The article discusses the background and aspirations of an undergraduate student pursuing a degree in Electrical Engineering and Economics, highlighting a keen interest in equity research and investment management [1]. Group 1: Educational Background and Interests - The individual is studying Electrical Engineering and Economics, indicating a strong analytical foundation [1]. - There is a focus on equity research, with an aim to build a career in investment management or investment banking [1]. - The approach to evaluating investment opportunities is sector agnostic, suggesting a broad perspective on market analysis [1]. Group 2: Investment Philosophy and Strategy - The individual has learned about investing primarily through reading investment philosophy books and engaging in discussions with peers [1]. - Experience in working on equity research reports is noted, along with an interest in quantitative strategies such as portfolio optimization [1]. - The investment horizon is defined as short to medium-term, ranging from 1 to 5 years, with a focus on identifying companies before their fair price is recognized by the market [1].

Financial Data and Key Metrics Changes - The company reported a GAAP EPS loss of $0.15 per share, an improvement from a loss of $0.56 per share in Q3 of the previous year [12] - Adjusted EBITDA for Q3 totaled $125 million, nearly double the $66 million reported in Q3 of last year, with year-to-date adjusted EBITDA increasing by 6% to $371 million [12] - Investment management fees increased by 8% in the quarter and 23% year-to-date, reflecting growth in the investment management business [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) grew to $31 billion in Q3, an 11% increase year-over-year, while fee-bearing capital rose to $9.7 billion, a 10% increase [5] - The company deployed or committed approximately $900 million in Q3, bringing total capital deployment to $3.5 billion year-to-date [6] - The credit team originated $600 million in new rental housing construction loans in Q3, totaling $2.6 billion for the year [6] Market Data and Key Metrics Changes - The rental housing sector continues to experience a supply-demand imbalance, with strong demand and occupancy rates over 94% [15] - Same-store NOI for the U.S. market-rate portfolio grew by 2.4%, with revenues up 1.3% and expenses down due to favorable property taxes [15] - In Ireland, same-property occupancy increased by 1.7%, leading to revenue and NOI growth of 6% [17] Company Strategy and Development Direction - The company is focused on expanding its investment management platform and monetizing non-core assets, with a pending acquisition of Toll Brothers Apartment Living platform expected to add $5 billion to AUM [9][10] - The strategy includes targeting rental housing, with over 70% of AUM expected to be attributable to this sector [10] - The company aims to capitalize on the structural undersupply of housing, positioning itself to benefit from long-term rental demand [10] Management's Comments on Operating Environment and Future Outlook - Management noted improvements in the cost and availability of capital, with lower borrowing costs supporting higher transaction levels [10] - The company anticipates continued growth in its investment management business while successfully monetizing non-core assets [17] - Management expressed confidence in the strength of rental fundamentals and the ongoing demand for rental housing [10] Other Important Information - The Board of Directors is evaluating a proposal for a potential take-private transaction, with a special committee formed for this purpose [3] - The company has successfully generated $470 million in cash from asset sales year-to-date, exceeding its target of $400 million for the year [9] Q&A Session Summary Question: Cap rates for multifamily in various markets - Management indicated that cap rates vary widely, trading in the high 4s to high 5s, depending on asset age and sub-market conditions [19][20] Question: Impact of government shutdown on affordable multifamily portfolio - Management reported no significant impact from the government shutdown, attributing any NOI weakness to expense-driven factors [25][26] Question: Fundraising and market share - Management noted challenges in capital raising for private equity firms but highlighted success in capital deployment, particularly in Asia and North America [27][28] Question: Loan origination volume in Q3 - Management acknowledged a seasonal slowdown in Q3 origination volumes but emphasized a strong pipeline and continued activity in the loan space [33][35] Question: Growth of the U.K. single-family rental platform - Management reported good growth in the U.K. platform, with nearly 1,300 homes committed and expectations for further acquisitions in Q4 [36][38] Question: U.K. office occupancy decline - Management explained that the decline was due to lease move-outs, with expectations for occupancy to improve as backfills are completed [39][41]

Financial Data and Key Metrics Changes - The company reported adjusted operating EPS of $2.45, reflecting a nearly 30% year-over-year increase, driven by earnings growth across all business segments [11] - Generated over $200 million in excess capital during the quarter, with year-to-date capital generation reaching approximately $600 million, positioning the company to exceed its $700 million full-year target [17][18] - Return on equity improved to 18%, with approximately $150 million of capital returned in the third quarter through share repurchases and dividends [17] Business Line Data and Key Metrics Changes - In the retirement segment, adjusted operating earnings reached $261 million, a 24% increase year-over-year, supported by strong organic defined contribution net inflows of approximately $30 billion year-to-date [11][12] - Investment management generated $62 million in adjusted operating earnings, a 13% year-over-year increase, with nearly $4 billion in net flows for the quarter, bringing year-to-date net flows to over $13 billion [13][14] - Employee benefits reported $47 million in adjusted operating earnings, primarily driven by favorable group life claims and prudent management of expenses [15] Market Data and Key Metrics Changes - The wealth management business experienced 20% year-over-year sales growth, with total client assets reaching approximately $35 billion [9] - The company serves nearly 20 million workplace customers, indicating a strong market presence and growth potential in the retirement and employee benefits sectors [10] Company Strategy and Development Direction - The company is focused on profitable growth across its diverse business lines, with strategic investments in wealth management and a disciplined approach to capital deployment [5][18] - Plans to continue investing in technology and advisor recruitment to enhance the wealth management segment, aiming for accelerated growth [9][32] - The company is committed to returning excess capital to shareholders while pursuing strategic M&A opportunities, particularly in retirement roll-ups [18][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering on full-year targets and advancing long-term strategy, citing strong execution and financial strength [20] - The company anticipates a return to target margins in the retirement segment as strategic investments in wealth management are made [12][15] - Management highlighted the importance of leveraging claims experience to inform underwriting and reserve levels for the stop-loss business [28] Other Important Information - The company resumed share repurchases during the quarter, with plans to repurchase an additional $100 million in the fourth quarter [17] - The launch of an integrated claims system for leave management is set for January 1, 2026, enhancing the employee benefits offering [15][61] Q&A Session Summary Question: Size of wealth management investment for 2026 - The company expects to use up to $75 million of excess capital on wealth management investments, primarily in technology and advisor recruitment [24][26] Question: Expectations for stop-loss margins in 2026 - Management indicated that reserve levels are firming up for the 2024 cohorts, with claims experience being leveraged for underwriting in 2026 [28] Question: Corporate expenses in Q3 and Q4 - Higher corporate expenses are attributed to strong performance-related compensation accruals, with expectations to return to a normal run rate next year [36] Question: Edward Jones partnership success - The partnership with Edward Jones is on track, with distribution agreements executed and technology connections being finalized for integration [80][82] Question: Blue Owl partnership plans - The Blue Owl partnership aims to access private investments and innovative solutions for retirement outcomes, with a rollout planned by the end of the year [84]

Financial Data and Key Metrics Changes - Third-quarter revenues were $1.46 billion, representing a 23% year-over-year increase, driven by engineering and real estate services segments [6][4] - Adjusted EBITDA for the quarter was $191 million, a 24% increase from the previous year [6] - Overall internal growth for the quarter was 13% [6] Business Line Data and Key Metrics Changes - Engineering segment revenues increased by 36%, with internal growth of 6% [7] - Real estate services segment revenues rose by 13%, with capital markets up 21% and leasing revenues up 14% [6][7] - Outsourcing revenues increased by 8%, led by valuation and advisory practices [7] Market Data and Key Metrics Changes - Assets under management reached $108 billion, a 10% increase from the previous year [5] - Capital markets showed strong growth, particularly in the U.K., Japan, and Canada [6] - Debt finance activity was robust, especially in U.S. multifamily originations [6] Company Strategy and Development Direction - The company is focused on unifying operations under the Harrison Street Asset Management brand to strengthen its business and deliver value to shareholders [4] - The engineering sector is seen as a significant growth opportunity, with plans to double revenue and profitability in the coming years [25][94] - The company is actively pursuing acquisitions in fragmented markets to enhance its service offerings [25][94] Management's Comments on Operating Environment and Future Outlook - Management anticipates a gradual recovery in capital markets as interest rates stabilize and investor confidence builds [4] - The company expects to meet its full-year outlook despite slight adjustments in investment management due to integration costs [9] - Management remains optimistic about the future, citing strong backlogs and a solid pipeline across geographic markets [7][9] Other Important Information - The company raised $1 billion in new capital commitments during the third quarter, with an additional $1.2 billion raised since quarter-end [8] - The leverage ratio was 2.3 times as of September 30, with expectations to decline to just under two times by year-end [9] Q&A Session Summary Question: Inquiry about engineering margins and service mix - Management noted that engineering margins were slightly impacted by service mix, with a decline of 20 to 30 basis points due to low-margin pass-through costs [14][15] Question: Discussion on investment management margins and future outlook - Management indicated that integration costs would impact margins for the next two to three quarters, but they are focused on long-term growth [16][18] Question: Organic growth in engineering - Year-to-date organic growth in engineering is around 8%, with expectations for continued growth in infrastructure-oriented markets [22][23] Question: Capital markets activity and pipeline - Management expressed confidence in the capital markets pipeline for the fourth quarter, expecting to exceed last year's performance [41][42] Question: Leasing activity and geographic performance - Leasing was led by the U.S., with strong performance in industrial and office sectors, and management expects continued growth [34][35] Question: Data centers as a growth opportunity - Management highlighted their comprehensive capabilities in the data center sector, emphasizing their full-cycle involvement beyond traditional real estate services [56][57] Question: Construction activity outlook - Management noted that construction activity is currently soft, particularly in condominiums, but there is ongoing activity in data centers and multifamily projects [61] Question: Operating leverage and capacity - Management confirmed a 22% operating leverage on incremental revenue in Q3, with expectations for continued leverage as revenues increase [65][66] Question: Future growth in engineering and acquisitions - Management sees significant growth potential in the engineering sector across various regions, particularly in the U.S. and Europe [92][94]

Financial Data and Key Metrics Changes - The company reported Q3 revenues of $1.46 billion, a 23% increase year over year, driven by growth in engineering and real estate services segments [7][10] - Adjusted EBITDA for the quarter was $191 million, reflecting a 24% increase from the previous year [7] - Assets under management reached $108 billion, a 10% increase from the previous year [6][10] Business Line Data and Key Metrics Changes - Engineering segment revenues increased by 36%, with internal growth of 6% and significant contributions from acquisitions [9] - Real estate services segment revenues rose by 13%, with capital markets up 21% and leasing revenues increasing by 14% [8][9] - Outsourcing revenues grew by 8%, led by valuation and advisory practices [9] Market Data and Key Metrics Changes - Strong sales growth was noted in the U.K., Japan, and Canada, particularly in capital markets and leasing [8] - Debt finance activity was robust, especially in U.S. multifamily originations [8] Company Strategy and Development Direction - The company is focused on unifying operations under the Harrison Street Asset Management brand, which is expected to strengthen the business and enhance shareholder value [5][10] - The engineering sector is seen as a significant growth opportunity, with plans to double revenue and profitability in the coming years [29][101] - The company maintains a decentralized operating model that allows for flexibility and responsiveness to market opportunities [5][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting full-year guidance despite slight expected declines in investment management margins due to integration costs [10][41] - The capital markets recovery is viewed as a multi-year process, with expectations for continued growth in Q4 and beyond [48][50] - Management highlighted the importance of long-term value creation over short-term margin pressures [41][42] Other Important Information - The company raised $1 billion in new capital commitments during the quarter, with total year-to-date fundraising reaching $4.4 billion [10] - The leverage ratio was reported at 2.3 times, with expectations to decline to just under two times by year-end [11] Q&A Session Summary Question: Inquiry about engineering margins and service mix - Management noted that engineering margins were slightly impacted by service mix, with a net margin decrease of 20 to 30 basis points [16][18] Question: Discussion on investment management business and future margins - Management indicated that integration costs would impact margins for the next two to three quarters, but they remain focused on long-term growth [20][21] Question: Organic growth in engineering - Year-to-date organic growth in engineering was reported at around 8%, with expectations for continued growth in the mid-high single-digit range [24][25] Question: Capital markets activity and fourth-quarter outlook - Management expressed confidence in exceeding last year's capital markets performance, with a solid pipeline for Q4 [43][46] Question: Leasing activity and geographical performance - Strong leasing activity was noted in the U.S., particularly in industrial and office sectors, with expectations for continued growth [37][38] Question: Feedback on integration of investment management - Client feedback on the integration process has been positive, with increased capital allocations from investors [34][36] Question: Construction activity outlook - Management indicated that construction activity is currently soft, particularly in condominiums, but there is ongoing activity in data centers and related infrastructure [66][67] Question: Future growth potential in engineering across regions - Management highlighted significant growth opportunities in the U.S., Canada, Australia, and Europe, emphasizing the fragmented nature of the engineering market [100][101]

Core Insights - The article discusses the author's background and experience in the investment management industry, highlighting a focus on long/short equities and a strong educational foundation in Finance and Accounting [1]. Group 1: Author's Background - The author has been writing for Seeking Alpha since 2011 and has a long-standing interest in the markets, dating back to elementary school [1]. - The author holds a Bachelor of Science Degree from Lehigh University, with a double major in Finance and Accounting and a minor in History [1]. - The author served as the Head Portfolio Manager of the Investment Management Group at Lehigh University, managing three portfolios [1]. Group 2: Professional Experience - The author has completed two internships, one at a large bank during the summer and another managing the Lehigh University Endowment for nearly a year [1].

Wealth management solutions provider Osaic has added US-based Four Pillars Investment Management to its independent advisor network. Four Pillars is the most recent advisor group to transition to Osaic from Commonwealth. Other such additions include Virtus Wealth Solutions, Gallagher Financial Services, and Hinck Private Wealth Management. Led by investment advisor John T Evans, Four Pillars brings around $143m in assets to Osaic. Other members of the Four Pillars team include Pamela Evans, who serves a ...

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1: Company Overview - Invesco aims to help people get more out of life through its investment services [1] - The firm provides a range of investment products and advisory services [1] Group 2: Services and Offerings - Invesco offers educational resources and expert investment views through its US Blog [1] - The company emphasizes the importance of understanding investment objectives, risks, charges, and expenses before investing [1] Group 3: Regulatory and Compliance Information - Invesco advises investors to consult legal or tax professionals for personalized advice due to the complexity of tax laws [1] - The firm clarifies that the opinions expressed are based on current market conditions and may change without notice [1]

Core Viewpoint - Invesco is an independent investment management firm focused on enhancing the investment experience for individuals [1] Group 1 - Invesco emphasizes the importance of understanding investment objectives, risks, charges, and expenses before making investment decisions [1] - The firm provides educational information but does not offer specific investment recommendations or tax advice [1] - Invesco's opinions are based on current market conditions and may change without notice, differing from other investment professionals within the firm [1] Group 2 - Invesco Distributors, Inc. serves as the US distributor for Invesco Ltd.'s retail products and collective trust funds [1] - The company operates through various affiliated investment advisers that provide advisory services without selling securities [1] - Invesco Unit Investment Trusts are distributed by Invesco Capital Markets, Inc. and other broker-dealers [1]